Discover Financial Services (NYSE:DFS) Earns Hold Rating from Analysts at StockNews.com

StockNews.com initiated coverage on shares of Discover Financial Services (NYSE:DFS) in a research note issued to investors on Saturday morning. The brokerage issued a hold rating on the financial services provider’s stock.

Several other research analysts also recently issued reports on DFS. JPMorgan Chase & Co. raised their price objective on shares of Discover Financial Services from $132.00 to $135.00 and gave the stock a neutral rating in a research report on Friday, July 19th. Royal Bank of Canada raised their price target on Discover Financial Services from $140.00 to $148.00 and gave the stock a sector perform rating in a report on Friday, July 19th. Jefferies Financial Group upped their price objective on Discover Financial Services from $145.00 to $150.00 and gave the company a buy rating in a research note on Tuesday, July 9th. BMO Capital Markets lifted their target price on Discover Financial Services from $115.00 to $119.00 and gave the company a market perform rating in a research note on Friday, July 19th. Finally, BTIG Research assumed coverage on Discover Financial Services in a research note on Friday, June 7th. They set a neutral rating for the company. Thirteen analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Discover Financial Services currently has a consensus rating of Hold and an average price target of $132.94.

Discover Financial Services Stock Performance

Shares of DFS stock opened at $133.35 on Friday. The stock’s 50-day moving average is $132.53 and its two-hundred day moving average is $126.30. The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.12 and a current ratio of 1.12. Discover Financial Services has a 1 year low of $79.04 and a 1 year high of $147.61. The firm has a market cap of $33.44 billion, a price-to-earnings ratio of 15.21, a PEG ratio of 0.90 and a beta of 1.43.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings results on Wednesday, July 17th. The financial services provider reported $6.06 EPS for the quarter, topping the consensus estimate of $3.06 by $3.00. The company had revenue of $4.54 billion for the quarter, compared to analyst estimates of $4.18 billion. Discover Financial Services had a return on equity of 20.92% and a net margin of 12.88%. The firm’s revenue was up 17.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.54 earnings per share. Analysts predict that Discover Financial Services will post 12.23 earnings per share for the current year.

Discover Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 5th. Investors of record on Thursday, August 22nd will be paid a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 2.10%. The ex-dividend date of this dividend is Thursday, August 22nd. Discover Financial Services’s payout ratio is currently 31.93%.

Institutional Trading of Discover Financial Services

A number of institutional investors have recently bought and sold shares of the company. Partnership Wealth Management LLC acquired a new stake in shares of Discover Financial Services in the fourth quarter valued at approximately $25,000. Opal Wealth Advisors LLC acquired a new stake in Discover Financial Services during the 2nd quarter valued at $26,000. Y.D. More Investments Ltd increased its position in Discover Financial Services by 147.8% during the second quarter. Y.D. More Investments Ltd now owns 223 shares of the financial services provider’s stock worth $29,000 after buying an additional 133 shares in the last quarter. Whittier Trust Co. of Nevada Inc. raised its holdings in shares of Discover Financial Services by 72.5% in the second quarter. Whittier Trust Co. of Nevada Inc. now owns 226 shares of the financial services provider’s stock worth $30,000 after acquiring an additional 95 shares during the last quarter. Finally, MeadowBrook Investment Advisors LLC purchased a new stake in shares of Discover Financial Services in the fourth quarter valued at $31,000. 86.94% of the stock is currently owned by hedge funds and other institutional investors.

About Discover Financial Services

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; private student loans, personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.